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tv   Bloomberg Markets Americas  Bloomberg  March 25, 2019 1:00pm-2:00pm EDT

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israeli prime minister benjamin netanyahu visited the white house. israel captured the golan heights from syria in the 1967 middle east war when it salvatore -- and it sovereign tour is not recognized by the international community. president trump's actions gives him a political boost weeks before what is expected to be a close israel election. today i'm taking historic action to promote israel's ability to defend itself, and really do have a very powerful, very strong national security, which they are entitled to have. mark: serious as president trump's recognition of israeli sovereignty over the golan heights makes washington the main enemy of arabs. a close ally of the president says that mr. trump felt a sense of relief after learning special counsel robert mueller's report had cleared him of conspiring with the russian government. south carolina republican
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senator lindsey graham flew home from florida with the president on sunday and said mr. trump felt the findings gave him legitimacy to his presidency. the president has declared the findings a total vindication but robert mueller reach no indication whether the president obstructed justice. british prime minister theresa may says she does not have enough support to put her european union divorce deal to a new vote in parliament. but she is hoping to do so later this week. the prime minister told parliament she regrets that britain is not set to leave the eu on march 29, as originally planned. her withdrawal plan has already been defeated twice. chinese president xi jinping is in paris to continue his discussions with his french counterpart emmanuel macron. the leaders are expected to sign about 15 business contracts worth several billion dollars. france has sought new investments benefiting local aeronautics and food companies.
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global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. it is 1:00 in new york, 5:00 in london, 1:00 a.m. in hong kong. i'm vonnie quinn. welcome to "bloomberg markets." on bloomberg world for critters in new york, here are the top stories around the world. special counsel robert mueller clears president trump of collusion. how are market digesting the latest on a washington, d.c.? assuring a new era for apple. tim cook takes the stage in silicon valley. the street expecting the announcement of a streaming video and news suppression service. u.s. officials traveled to china
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later this week for further trade talks with chinese officials. how far are we from a final deal? halfwayiggs is with us, into the trading day where there is some choppiness. fluctuating between gains and losses. right now certainly in a loss. global risk off rally, pushing all of the flight into bonds. not helping the equity indices that we are looking at. the russell 2000, the small-cap stocks, even stronger with the weaker dollar. these are insulated from the global growth concerns we are seeing. within the s&p 500, we mentioned off or 2%. some of the biggest losers are the financials. interesting if you look at my terminal, where we talk about the financials. according to charles peabody, he says banks still have room to go lower, that some of the yield curve concerns are not yet dissipating.
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according to jeffries, they look a little oversold. looking at the bank index relative to the rsi on the s&p 500. at some of the worst oversold levels going back to 2017. the banks looking a little bit under pressure. i want to look at some of the chipmakers. getting a downgrade. analog devices, texas instruments, at bernstein. to one dollarut 20 cents on analog, $1.15 on texas instruments. they don't like the valuation, so they are getting a price target. those are off almost 3%. the stoxxlook at index on a one-year basis. pulling back a little bit from the highs, touching the peak of 1445. certainly off of those. some concerns about chipmakers. vonnie: thank you.
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breaking news on airbus. they have secured a long-awaited multimillion dollar aircraft deal from china. of course, a state visit between president xi jinping and emmanuel macron of rants. now we know that the france, china accord is for 290 of the a320 family and 10 others. china aviation plans to buy 290 family airplanes and 10 a350's. this is as boeing is really from its own issues. boost.ll give airbus a macron says the airbus sale is an excellent signal on the relations between china and france. , how thek about this mueller probe has impacted the market. let's welcome our senior market
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editor michael regan. some choppy action, not much going on in treasuries. gold got a bit. you say the markets are waiting and seeing post mueller? michael: top of conversation with everyone was with his have an effect on risk appetite particularly. most of the members on the team thought it was a nonissue, that the market didn't really care. there are a lot of analysts on record who say they think it is a risk positive development. i tend to agree, to some degree. it is very much in a fuzzy sentiment way. there is the risk of an asymmetrical outcome. if they had come out with the report showing really incriminating evidence against the president, the risk on the downside would probably be a lot more than the upside risk from a positive outcome for president trump. just because of all the uncertainty about the chaos that would follow.
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otherwise, the market is back to focusing on the yield curve and economic data. vonnie: michael avenue not a charged with trying to extort nike. shares taking a hit on the news. the california lawyer who represented stormy daniels among many others in the last couple of years has been charged by prosecutors in new york with attempting to extort millions of dollars out of nike. they are contending that he threatened to release damaging information about the company which did not meet his demands. they say michael avenatti demanded multimillion dollar payments and threatened to release damaging information if his demands were not met. this is a new chapter in the michael avenatti saga. we will follow and see what nike says, as well as avenatti.
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back to mike regan. all of these little threads that make for great watercooler talk, but essentially the market is looking high-frequency data. areael: some of the quants looking at momentum. after the selloff friday, the question is if this done were momentum will trigger more selling. people looking at the 2800 number in the s&p 500. only one close above it. now worrying is that will be resistance again. will200-day moving average come back into play if we drop further. the big question on everyone's mind is we have seen this disappointing economic data, the economic surprise index is still very negative. the question is is this just a soft spot or the beginning of something worse? on the +, this drop in long-term interest rates is starting to work its magic. home sales boomed on friday. kind of mixed signals going
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around. vonnie: thank you for bringing us up-to-date with our team. started. event has tim cook has taken the stage and says it is all about services. apple news is number one in new and the just announced a new magazine subscription service. let's bring in our next guest, david kurt patrick -- kirkpatrick. we were anticipating some streaming services. how will this add substantially to apple as a service provider? david: apple has historically been a device company but margins on services are super. apple has to grow from its gigantic current scale, and it's looking for new, high profit areas in which to grow. therefore, services, particularly video, make a lot of sense. video and news today we are expecting to hear the most about. we could hear about a credit card as well, as bloomberg
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reported. i think we will see a new kind of apple emerge, which will be a little more confusing for people, harder for them to understand. our preconceptions about what apple is are going to get blurry. if you look at amazon, you realize this is the kind of company that we will be seeing more and more of, the giants. they have to almost do everything. vonnie: wedbush securities estimate between amazon, disney, hulu, investing about $20 billion in streaming content. apple spending about one billion. how much can it spend to grab market share? david: as much as any of the rest of them if they found it valuable to do so. today is a toe in the water. they will try to establish themselves as a video production their own video service, in a way they never have before.
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if it goes well, you could see them plow many billions into this. it is not just about the streaming video desk just repeating video. it is really about a deeper relationship with the customer. -- distributing video. apple has roughly 1.4 billion people around the world that have their devices. around 900 million in general use for how many have an iphone. but what they really want is to have a deeper, minute to minute relationship with those people, that involves spending money over and over again. named: tim cook has just the new service apple news. bloomberg does has a relationship with apple news. it may even be apple news plus. there is a little +. what is different from the news service that apple already had? they have new partners they are bringing in with the service. attractivea very pricing in a news product that
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will make people feel quite comfortable spending, say, $10 a month, which is what was , forted to be, to get example, full content of the wall street journal, which on its own cost more than $10 a month. hundreds of magazine possibly. "people" is one of them that they have been talking about. i think it is just a much deeper, more holistic approach toward disturbing news, just as their video approach will be a deeper, more wide-ranging approach to distributing video. they had apple tv, had partnerships before, but now there using their own -- they are producing their own content in video, and four more in news. the likes of reese witherspoon signing up for content, and will be at the event today. does that mean that hardware is sort of over for apple? can we expect any new iterations that will blow us away? still seek toll
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give us iterations that will blow us away on the hardware front, and even exceed it. the announcement about the new a step in the right direction, a fast-growing category for them. we will see them continue to do that. they will always want to increase our spending on their devices, but this helps, too. their thinking is not only is this an independent revenue and profit stream, but it will tighten our connection to the ecosystem, which will also have the fringe benefit -- the significant benefit of leading us to spend more on their products. vonnie: apple tv has not worked up to now. what have they cracked that they did not before? david: nothing yet, we are just seeing what they will do. certainly, the fact that they are hiring people like reese witherspoon, jennifer aniston, steven spielberg, to produce
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content that will be exclusively theirs, that is a new thing. they have not finance the creation of content. we have seen other big tech players do that already. amazon is a great example. google with youtube has been moving more in that direction. in no way, it is good to think of apple in parallel with amazon , as they make these moves. both of them are companies of such scale and size of their ambition, but there is almost literally nothing they will not try to do if they think it can tighten their connection to us and make money. because their relationship with consumers is so deep and multifaceted, they have an enormous number of opportunities to do that. vonnie: david kirkpatrick, thank you again for the context. the stock is down .6%, now off of its lows of the session. we are hearing some details from apple about this new apple news plus service. we anticipate the announcement of some streaming services, and
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will continue to follow tim cook on stage. , robert lighthizer and steven mnuchin are heading back to beijing for talks this week. what can we expect from trade talks? this is bloomberg. ♪
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vonnie: this is "bloomberg markets." i'm vonnie quinn. president is on a state visit to france today, on the table, about 15 business contracts worth multimillions of dollars. we already know there is a contract in place with airbus for about 300 airplanes. the deals are sent to span infrastructure, energy, and transportation. yesterday he was in italy where he has said tomatoes with rome worth more than $20 billion.
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what about the united states? robert lighthizer and the treasury secretary are heading to beijing for talks. peter coy is here to tell us what to expect. how does the mathematics change after the mall report has been handed in, which gives the president just a little more confidence maybe, and with reports of china that maybe it is having a problem with pork prices, for example? think the u.s. relationship with china is anywhere near as warm as the relationship china has with france or italy these days. as you said, robert lighthizer is going over, steven mnuchin, , and thenbegin a deal the vice premier of china is coming to the u.s. next wednesday. thesesly, the hope is very high-level talks will produce a deal that trump and si -- xi can sign.
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to answer your question, who knows if this helps trump a bit. on the margins he is probably feeling more confident about his domestic base. china continues to have a problem with a slowing economy. that is one of the reasons we have seen china making more and more of an effort to reach out to the u.s. to strike a deal. they are tired of these tariffs. they are not good for them. that is a positive sign of a deal but there are a lot of negatives as well. sne is just that the tariff already in place, trump wants to keep them in place until china has clearly complied with whatever terms of a deal is struck. the chinese say no, we want the tariffs to come off now as a condition for making our concessions. that is a stalemate. theie: it could also be middle ground, if china goes
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hard on the fact that they want tariffs to come off, at least it has some thing to play with. the real issues with enforcement, the u.s. wants language on enforcement. the u.s. has lost a wto complaint in the last few days which makes it seem like the u.s. is deadly serious about the complaints. s are fairly easy to measure but the thing that the u.s. cares most about, lighthizer in particular is dogged about this, are the things that are harder to measure, protection of intellectual property. on oris no lights which, off, when it comes to intellectual property. it is trench warfare. did they protect this piece of intellectual property, that piece? china has repeatedly, over many years, made commitment to protect intellectual property. the u.s. is saying it has not gone far enough. that is why they want to see clear evidence before they make
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any concessions on the u.s. side. vonnie: i should mention that wto complaint was about india duty free onffs, 29 imports from the u.s. our thanks to peter coy. you can hear from more of the magazine's editors and reporters every saturday and sunday on bloomberg television and radio. still ahead, apple unveiling its new focus on services and subscriptions. more about what is being said on stage. this is bloomberg. ♪
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vonnie: this is "bloomberg markets." i'm vonnie quinn. moments ago, apple announced apple news plus, a magazine seduction service that launches today. it will cost $9.99 a month. bloomberg news does have a relationship with apple news plus. tim cook making the announcement at the cupertino, california headquarters. joining us for the latest is
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brad stone. magazine's inspection service, assuming there is lots more in their, what is new about this? heaven we had this for a while? brad: other bundles have existed like this, they acquired a company called texture that had a relationship with about 300 magazines. apple has tried to arrange agreements with other news sources. the new york times famously demure the ceo, saying he was not in favor of the financial arrangement. for today'sppetite event, which will focus on video and original programming. vonnie: we will get to that and a bit as soon as tim cook announces it. advertisers were not be able to track readers. apple very aware that privacy is in your taste, something important to consumers. how will that impact the revenue stream? tim cook made a statement
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at the beginning of today's announcement, saying apple news is always favored a curated approach, elevating more responsible, trustworthy news organizations. criticisminuing his of companies that watch would you read and tailor advertisements. apple is charging a subscription, $10 a month. other news sources are free to read. so they have to offer some value. the value is they are not tracking or serving customized ads, which some readers may find a little too pervasive. vonnie: including the l.a. times, wall street journal, not the new york times, but lots of other outlets. apple pay will be in 40 countries this year. looking at credit cards. what new will we learn about what apple is doing with pay? brad: we will see but this is all about the services business, growing 20% of the hardware
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business is stagnant. looking at other portions like apple music, and this drive to create a competing stream service to amazon and netflix. vonnie: thank you. we will bring you the latest news from apple as it happens today. brad stone in our san francisco headquarters. apple stock down 1.1%. there is more time. tim cook will be on stage for a little while. meanwhile, nike stock down today. michael avenatti charged with trying to extort nike, threatening to release damaging information, according to the united states. this is bloomberg. ♪
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"all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. mark: i'm mark crumpton with bloomberg first word news. senate judiciary committee chairman lindsey graham says "the cloud hanging over president trump has been removed by special counsel robert mueller's report."
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a close ally of trunk, graham also says it's a bad day hoping the mueller investigation would take president trump down. thet is clear to me from four-page summary by attorney general barr that the russian did, in fact, hack into the dnc, the podesta emails. it was the russians. it was not some 300-pound i sitting on a bed somewhere. the conclusion was firm without equivocation that no one on the trump campaign colluded with the russians. top house judiciary republican doug collins said "there is no constitutional crisis." fighters whoyrian drove islamic state from its last stronghold want an international tribunal to prosecute hundreds of foreigners rounded up in the campaign against the extreme is for. western countries have largely refuse to take back their
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detained citizens, fearing they would not be able to convict them in civilian court, and that they could pose a security risk. flash floods in southern iran have killed at least 17 people and injured more than 70. iranian state tv reported most of the people killed have been trying to take videos of the flooding on their phones. several provinces were alert for imminent flooding and the water authority in the capital of tehran said floods were a possibility there as well. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. shery: live from bloomberg world headquarters in new york, i'm
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shery ahn. amanda: live in toronto, i'm amanda lang. welcome to "bloomberg markets." we are joined by our bloomberg and bnn bloomberg audiences. new era foring a apple. tim cook announcing apple news+, a magazine news seduction service and apple credit card. and in version divergent. we explore what is wrong with the misreading inverted yield curves. oil is slightly lower over concerns that slowing global growth will hit you'll consumption, while in venezuela, president maduro is vowing change. how will markets react to his policies? let's get a quick check on the major averages. pressure across the board. the s&p 500 falling .3%. tet, financial under pressure as treasury yields continue to be pressured. the dow falling .2% for a second consecutive session. the nasdaq down .4%.
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investors still digesting the latest news around the special counsel's report, not to mention waiting more news on the u.s.-china trade deal. u.s. officials in china this week. we also have headlines over brexit. theresa may saying she doesn't have enough support or a third vote on her brexit deal. the eu now preparing for a no deal brexit scenario, saying that looks increasingly likely. sterling now plunging around a $1.31. percent, areda: here in canada, we seeing it hit one particular crop, canola. bloomberg reported last week that shipments from china -- from canada to china were down 30%. the concern is china has shut its markets to canadian canola. china says it has concerns about quality but the reports are it is more or less broad spread across the market. this is a $25 billion industry in this country. pretty serious news.
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you can see what it's doing to the price. newshile, we also have today about boeing also involving china. that have been suggestions the u.s. and china would make a deal on planes. seems they have done exactly that. 320's.ill buy 290 airbus about $35se is worth billion. obviously some bad news for boeing, having a good effect on its stock. shery: xi jinping right now touring europe, and interesting to see these european countries grapple between -- really being cautious against china's growing influence him about the same time, wanting their investment in their companies. let's talk about the latest from apple. the event is happening right now in cupertino, california. they have announced a series of
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new products all around services. we have apple news+, a magazine's restriction service, apple credit card, which will be the apple card, and more news on what the apple news+ will include. the l.a. times, wall street journal play read playing to discuss on that front. to me: very interesting on a apple credit card, essentially globally, anywhere apple pay works, the credit card will work. ago, a major canadian bank ceo says he is most afraid of these types of companies getting into this space. it gets right between them and their consumers. basically, apple getting into all the business sectors you can think of. let's get more insight into apple's push into services with kirkpatrick, and sarah ponczek. we have tons of news, whether it's magazine subsections, credit cards.
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maps,o know that apple they say, is the most used app on ios. what is the most important thing to you? david: the way they are talking about the credit card is quite a surprise. no fees of any kind including late fees. even we were discussing here on the set, they announced it will give you more information about the transactions on your statement that any credit card ever has, because they will leverage apple maps. so they will show you exactly where each transaction happened. for me, that may be a reason to use it. we all again these things -- where did i spend that? how did we spend so much money? the fact that apple is taking this enormous financial and technology competence and applying it for a credit card. we have had apple pay not really take off the way the company
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wanted it to for several years. i don't think most people use it that much. now it will take up with this card i think. amanda: serra, one of the powerful thing that these major media, tech companies that dominate the market is this notion of words they could go. getting into banking is something that people wondered about. you look at the price multiple of apple, not quite a bank multiple, but closer to a bank multiple than a startup tech firm. in we already valuing them that way, as complex financial institutions? sarah: i don't know if we can go that far but this transition has been talked about for a long time. i was looking at shares of these a, mastercard, and they are pretty much unchanged. not seeing the reaction. although this has been a discussion for the past more than a year probably. if you look at apple shares, investors maybe not taking it the way they hoped. the worst-performing stock in the s&p 500 right now, down 1.3%.
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there is no question, because of the value of companies like day,, when we see a down down 1% or more, we see it really heavily affecting the major averages. amanda: david, the history of apple had been for so long the thing we didn't know we needed, the thing that we didn't know could exist. this new device that we would spend crazy amounts on. we have not seen that in a while. nothing we are seeing here is new. an apple take on something that already exists. is this enough for the company? david: ultimately is a long time. this is a good set of initiatives for a company that has to grow from an $800 billion cap. bloomberg,saying on the reality is, companies this big cannot refuse to think about any possible growth arena. i also think apple is showing creativity today in leveraging its scale across a variety of
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segments. my feeling is moderately optimistic that they will have a positive impact with this range of announcements. thingsuch a mixed bag of they are putting out there today, i don't think we can make a general statement about all of them. but i'm very excited about the credit card. shery: how much leverage will these $1 billion active devices give the company when it comes to pushing content? david: a lot of advantage. the fact that they had so many devices around the world gives them an asset that no other company has for promoting literally anything. financial products, video, music. they have not totally won on that but have made a good dent. news will also be something that they announce. interesting features in their product today. district vision capability with the devices give them a term of this advantage. amanda: we have to leave it there, david kirkpatrick, sarah
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ponczek. thank you to you both. turning now to the u.s. economy. a recession morning is flashing in the bond market. last week closed with the closely watched segment of the u.s. yield curve, again gap between three and 10-year rates, turning negative in the lead up to the downturn that began in 2007. this part of the curve initially flip to inverted in 2006. joining us with what he thinks about the curve and the recession risks, culturally -- michael for raleigh. i want to start with this whole question in the marketplace, and that is this time it may be different. i know those are dangerous words , but in version this time maybe more about the fed and may well be meaningless because of the fed. is there an argument to be made there? one is that term premium seems to be much lower now than it had been in decade past.
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that means we can expect to see a curve flatter than it had been, even in normal times. second reason that it may be different this time around, the market is telling us the fed may want to use in the next year or two but the fed may be doing that not so much because they have big recession fears, but because they want to generate more inflation. even if the fed does cut, historically, they cut because the economy is turning down. this could be a customer they are just out there to do some more inflation. if that is what the market is seeing, it wouldn't be the same signal as the past. mentioned, i think given the empirical success of the yield curve predicting recessions, we don't want to totally downplay what the market could be telling us about growth. yield we know once the curve inverts, it takes time for recession to happen. this chart showing that lack from the last time the yield curve inverted, until we saw the recession. is it worth debating right now
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whether we will get to a recession in a year or more from now, when so many things could change until then? could we spend our energy better on other things? are an: if you economist, that is all you spend your energy on. i think it's worth incorporating all of these various price signals we are getting from the market. knowre right, we don't about what will inspire -- transpire in 2020. i certainly do think it is one among many signals we want to pay attention to. and it is not consistent also with some of the other signals that we are looking at like jobless claims, home sales. those are not telling you recession. curveegments of the yield may be sending that signal. we have to look at all of these things and balance when we think about the outlook. amanda: the truth is we had been in this strange environment, low for long. bloomberg reporting there is 10 jillion dollars a negative credit, debt out there in the $10 trillion of
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negative credit, debt out there in the world. what will be the implications of all of the negative debt? michael: that is a symptom, reminder of the threat of ion, potentially taking place in europe, and we have to think about that. it is a reminder, a symptom of what could be one of the biggest challenges that this generation faces in terms of thinking about the business cycle, economic growth. thank you so much for joining us, michael feroli. plenty more to come. this is bloomberg. ♪
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shery: this is "bloomberg markets." i'm shery ahn in new york. amanda: i'm amanda lang in toronto. sent oil prices whipping between gains and losses today. the yield curve inversion on friday also weighing down on prices. for more, let's welcome our oil trading reporter. jessica, when it comes to the supply demand dynamics, it seems we have a more bullish scenario for prices. when comes to global demand, people are not too convinced. jessica: we are seeing a mixed picture in the market right now. succeedty i had to dollar a barrel level for the first time last week since november but did not manage to close above it. from, oil was way down reports that we may be seeing a slowdown in economic growth. but the dollar's decline has also led oil to ease its losses. amanda: when we look at a
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longer-term picture of oil, we are looking at a three-month on my next. , thebelow the $80 level sweet spot potentially. how much power has opec lost to get that oil price where they would like it to be, their optimal number? mentioned, inyou order for some of these nations, like saudi arabia, to balance their budgets, they need oil more in the 80's, not in the 60's. we do have the supply disruptions in venezuela that are really coming to the forefront here. citigroup today raised their bread price forecast for the year to $70 a barrel, saying disruptions in countries like venezuela will likely lead to oil prices spiking. shery: what about disruptions in venezuela? we expect president maduro to come out today with renewed pledge to overhaul the economy.
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how has the collapse of oil coming out of venezuela affected prices? watchingwe have been the sanctions affect the venezuelan exports into the u.s., falling to zero last week. we had the u.s. coming out saying it will not stand by russia and their military interference into venezuela, saying it is exacerbating the tensions there. venezuela remains fragile. beena: of course, that has the case, and everyone watches with concern the ongoing situation. but does it have a big impact on supply? have those issues resolved itself, given venezuela's output in recent years? did see output decline substantially last year. that has been priced into the market. right now, venezuela is trying to look or buyers. they had millions of barrel setting off the coast just waiting to be sold. that is the key issue right now and we will have to wait and see. of oil out oflut
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venezuela. amanda: thank you, jessica summers. michael avenatti has been arrested and charged by federal prosecutors in new york with attempting to extort millions of dollars from nike. those details are next. this is bloomberg. ♪
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amanda: this is bloomberg markets. i'm amanda lang in toronto. shery: i'm shery ahn. news+,nnouncing apple including the l.a. times, wall street journal, and the much-anticipated magazines of scripture service. apple saying advertisers when i'll be able to track readers, something that is great for those consumers that really respect privacy. amanda, interesting for apple, because they are trying to go beyond their hardware. already did it last week
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when it came to new upgrades for the airpod. we are seeing this growth on those services, wearables, away from those iphones. to your point, even with those legacy products like the iphone dropping in terms of the growth rate, it is where they sell a lot of services. isting into news services seen as a great place. a lot of conversations about content. will apple push deeper into production content? will it go to a whole new place for apple? we should also note, announcing a gaming service and this credit card, which will be globally available anywhere apple pay is available. pushing further into the banking space. shery: let's now turn to some developing news. michael avenatti has been charged with trying to extort nike is now hearing the federal prosecutors in new york will file a criminal complaint. we are talking about the
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california lawyer michael avenatti. let's turn to david for the latest. mr. kavanaugh body, well known involving president trump, allegations surrounding him. what is the latest on this news? out in thet came last hour, that michael avenatti was arrested and charged with extortion. he claimed in the last week to represent a former aau cap -- basketball coach who had ,amaging information about nike and about how nike has made payoffs to different amateur basketball players, and that he was going to release the nike paid himless at least a million and a half dollars. the lawyers for nike then told whoral prosecutors, essentially set up a stain, and recorded not a making a series of incriminating comments,
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according to the federal complaint that was just released in the last hour. amanda: we expect to hear more from the department of justice on this. how serious of a charge in this, this extortion charge? what could the result be? >> it is a very serious fraud charge. theoretically, he could spencer or years in prison and have to forfeit a lot of money. i'm sure that his defense would he wasthing like involved in hard-nosed business negotiations and had no intent to defraud nike, or extort nike. shery: before news of the charges, of a knotty posted a natti posted aave tweet that he is major scandal about nike. was he trying to preempt the news? >> according to the complaint filed, he said he had damaging information about the company thehow it had bribed
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families of several promising amateur basketball players. that presumably is the subject of the tweet. terms of where this story fits in, so interesting to see this coming on the heels of the whole jeff bezos affair -- pardon the pun -- in terms of how people respond to these. are we in a new era were no longer people will given, the next call is actually the one that gets you in trouble? iswhat this seems to show that there are certain lines that cannot be crossed in business negotiations. the company felt avenatti clearly crossed a criminal line. it is pretty unusual to charge someone with extortion, especially a high profile person like avenatti. the facts that are laid out in the complaint, if they are true, are quite incriminating.
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it will be interesting to see what avenatti's defense is. amanda: how long do you think the whole process takes from announcing this to actually getting through all the facts? david: presumably, this case would take several months to resolve. and we got word there is a press conference in california as well. it's possible there is a second set of criminal charges against avenatti there that may or may not be related to this extortion case. amanda: we will watch it. david, thank you. from toronto and new york, this is bloomberg. ♪ you.
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this is beyond wifi, this is xfi. simple. easy. awesome. xfinity, the future of awesome. >> i'm mark crumpton, with news.erg plus first word the supreme court rejected an appeal from a mystery come to -- coming to sought an appeal to
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not turn over information to robert mueller's investigation. it has been incurring fines of $50,000 per day for the first -- refusing to comply with a grand jury subpoena for documents. the king of the lot has -- king abdullah has canceled a trip due regardingnouncements the capital of israel. he is the custodian of muslim holy sites in the old city. palestinians seek east jerusalem as the capital of their future state. authorities from mozambique say that conditions on the pratt -- on the ground are improving. ground killedthe 700 and 50 people in mozambique and milan away, officials say tot the death toll is likely rise. they are also concerned that choler

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